India is Facebook’s Fastest Growing Market

“We are growing faster in India compared to the average of the rest of the world. Our primary focus right now is for the next billion people to come online and India is obviously a huge part of that,” said Adam Mosseri, vice president, product management at Facebook’s new office in Gurgaon, India.

In terms of daily active users, Facebook in India grew 22% year-on-year compared with 17% globally, including its home market.  Mint reports that in a slowing U.S. ad market, Facebook is looking for the next frontier of growth. And nothing looks as good as India’s under-penetrated market, in terms of users, advertising and Internet access.

Adam Mosseri

Adam Mosseri

Mosseri added, “There is a lot more work to do to ensure the product does well, there’s performance, language or the size of the app or offering video. There’s so much potential and so much work to do I worry about our ability to do enough of it fast enough.”

When India’s Prime Minister, Narendra Modi visited California last year, a special Town Hall meeting was organized by Facebook CEO Mark Zuckerberg and played live to users worldwide. Earlier, Facebook also bought What’s App, a company whose mobile application is wildly popular in India.

 

November 8, 2016   No Comments

Boston Scientific to Make India its Biggest R&D Hub

Marlborough MA-based  medical devices maker Boston Scientific Corp., plans to make India its biggest research and development location  outside the U.S. where it will develop devices such as stents, catheters and pacemakers at its Gurgaon facility for the Asia Pacific, Middle East and African markets, and roll them out by 2017.

“As one of seven strategic global R&D sites for Boston Scientific, the R&D center in India has the potential to be the largest outside of the U.S.,” said Prabal Chakraborty, vice president and managing director at Boston Scientific Company India Pvt.Ltd, the Indian unit of Boston Scientific.

SYNERGY Stent

SYNERGY Stent

The company  is seeking to expand its market share and increase sales through geographic expansion, especially in high-growth emerging markets such as India, with rising coronary angioplasties, reports the Live Mint.

“The R&D center will focus on developing products to meet the clinical needs in high-burden diseases specific to emerging markets in the Asia Pacific, Middle East and Africa regions, and to serve as a global product engineering site,” Chakraborty said.

 

June 20, 2016   No Comments

Stryker Banks on India R&D to Accelerate Sales in Emerging Markets

Michigan-based medical device manufacturing company Stryker is increasingly relying on its research center based in Gurgaon near New Delhi for new products as it puts into motion an aggressive strategy to accelerate sales from emerging markets such as India and China, reports the Economic Times.

The company’s no frills power tool was conceptualized, designed and developed by the center, which employs 200 engineers and technologists. This tool is used for cutting, drilling and shaping bones during joint replacement and trauma procedures.

Stryker said the product, branded System G, is expected to be commercialized soon and that it will be positioned in the mid-tier segment of the market.

“Growth in emerging markets will be of strategic priority and India offers the most exciting opportunity among the BRIC nations,” Stryker chairman and CEO Kevin Lobo told the news publisher on his recent visit to India.

Kevin Lobo

Kevin Lobo

70% of Stryker’s global sales comes from the U.S. and Europe, and the company aims to increase the share of other emerging markets to its global sales from 8% at present to 12-14% over the next five years.

It will strive to drive sales of cutting-edge technology-based devices such as Mako, a robotic surgery device used for knee and hip replacement, in India. Its strategy includes plugging the gaps between the high-end, high-priced orthopedic products and the bottom end that is fed mostly by local device makers.

April 11, 2016   No Comments

Coca Cola Launches Flavored Milk in India

Coca Cola has expanded its beverage portfolio in India by the introduction of a milk-based flavored drink, VIO.

The drink has been developed specifically for the Indian palate at Coca-Cola India’s R&D center in Gurgaon with input from the R&D centers in Atlanta and Shanghai. Made from milk sourced from local dairy farmers, VIO has been formulated with a blend of saffron, pistachio and almond flavors in the ‘Kesar Treat and ‘Almond Delight’ variants. The product contains no preservatives and will be made available in 200 ml aseptic packaging reports Consumer Goods Technology.

VIO Flavored Milk

The company’s entry into dairy is its next growth prospect after sparkling water and juices. Its portfolio currently includes Maaza and Minute Maid juice drinks, Kinley packaged water, Schweppes tonics and mixers.

March 14, 2016   No Comments

Online Retailing in India Gathers Steam

The Economist reports that in the next 15 years India will see more people come online than any other country. Last year e-commerce sales were about $16 billion; by 2020, according to Morgan Stanley, a bank, the online retail market could be more than seven times larger. Such sales are expected to grow faster in India than in any other market.

Currently there are three top e-commerce companies in India: Amazon India, Flipkart, and Snapdeal.

Amazon India Flipkart Snapdeal
Executives Amit Agarwal Sachin Bansal; Binny Bansal Kunal Bahl
Investors .Jeff Bezos Naspers owns a 17% stake in Flipkart; other JD.com investors, including Tiger Global Management, in New York, and DST Global, a Russian fund, have also backed the company Japan’s SoftBank, a big investor in Alibaba, has backed Snapdeal since 2013
Share of Indian E-Commerce 12% 45% 26%
USP Amazon  lets customers order groceries online and have them delivered from the nearest local grocery store Uses Mumbai’s famous network of dabbawallas, or lunch-delivery men, to drop off packages when they picked up customers’ lunch tins Snapdeal claims more than 60% of its sales come from outside India’s big cities, and recently launched seven regional-language versions of its website

 

Indian regulations bar foreign-backed e-commerce firms from owning inventory, and so these companies function as marketplaces which try to boost the number of sellers on the their platform—it is the sellers, after all, who pay commissions and shipping fees.

So companies offer a range of services to draw businesses to their sites: Flipkart has programs to teach sellers how to manage peak sales during festive seasons in India; it also advises fashion brands on trends and production. Amazon India announced a traveling studio-on-wheels, offering training, photography and other services to help shop-owners come online.

By far the most important help they offer is access to credit since small business are not very actively supported by bank loans due to scarce financial statements and limited credit history.

Delivering online orders on a large scale can also be a challenge given the volumes of traffic and vague addresses. E-commerce companies have devised various methods of handling this integral part of the business. A startup named Delhivery headquartered in Gurgaon, has hired more than 15,000 staff, and works with a number of e-commerce firms. The company moves goods to 700 or so small distribution centers overnight to avoid slow-moving traffic on main roads during business hours. Thousands of delivery boys then dash to and from these centers throughout the day, bearing more than 10 pounds on their bikes.

Indian e-commerce has a lot going for it:

  • Income per person, which in 2014 was $1,570, could be twice that by 2025
  • Two-thirds of Indians are younger than 35, and very savvy in using smartphones
  • According to Goldman Sachs smartphones accounted for one in four Indian mobiles
  • Morgan Stanley expects internet penetration to rise from 32% in 2015 to 59% in 2020. By 2030, India is projected to be a one-billion-person digital market

March 7, 2016   No Comments